The Federal Reserve’s recent rate cut offers much-needed relief to business owners facing historically high borrowing costs. These interest rates directly impact borrowing costs for small business loans, commercial real estate loans, and other financing options. For small business owners, even a slight rate adjustment can have significant financial implications over the long term. Lower rates, like the ones just implemented by the Federal Reserve, can reduce the monthly payments on loans. This gives small business owners the ability to secure more affordable financing for expansions, equipment purchases, or working capital.
However, it’s not just the Federal Reserve’s rate that matters – how the lender structures the loan’s interest rate can make all the difference in your overall borrowing experience.
That’s where FNB Small Business Finance’s rate structure options come into play. Implemented in response to volatile interest rates, we have rolled out some of the most flexible rate structure options available.
Our rate structure options include:
- Variable quarterly for the life of the loan, rate resets every calendar quarter based on the then Prime Rate as published in the Wall Street Journal.
- 3-year adjustable for the life of the loan, rate resets every three years based on the then Prime Rate as published in the Wall Street Journal.
- 5-year adjustable for the life of the loan, rate resets every five years based on the then Prime Rate as published in the Wall Street Journal.
- 10-year fixed for the life of the loan, only available for loans with a 10-year term.
- 3-year adjustable, converting to variable quarterly at the end of year 3 for the life of the loan.
- 5-year adjustable, converting to variable quarterly at the end of year 5 for the life of the loan.
- Variable quarterly for the first 3 years, converting to a 3-year adjustable for the life of the loan.
- Variable quarterly for the first 3 years, converting to a 5-year adjustable for the life of the loan.
The strong foundation of FNB Small Business Finance is what allows us to provide so many flexible solutions to small business owners, even in times of economic uncertainty. With FNB, you can have confidence in the financial strength and stability of our bank, no matter how interest rates fluctuate.
Contact our team today to discuss your plans and learn where interest rates stand.
